Predicted Interest Rate Fluctuations In 2015 – What Maine Buyers Should Keep In Mind

Interest rates have risen since the beginning of 2015. According to many professionals, it will likely go up even more as 2015 progresses. This is critical information for individuals who plan to find a property this year. Predicted interest rate fluctuations in 2015 and what Maine buyers should keep in mind is provided in this blog.

Impact of Predicted Interest Rate Fluctuations In 2015

Interest rates determine monthly home ownership costs. A rise in interest rates mean that you may be approved for less and/or pay a lot higher for the same property. An upward movement of even one quarter percent can create a difference. If you are looking for a house at the maximum approval amount, any rate increase could really impact your plans.

Here is an example of how pre-approvals can fluctuate with interest rates. This is assuming a particular down payment percentage and keeping the mortgage payment unchanged.

Interest Rate Price Limit
4.00% $393,552
4.25% $381,932
4.50% $370,817
4.75% $360,181
5.00% $350,000
5.25% $340,250
5.50% $330,911
5.75% $321,961
6.00% $313,381

Other Affordability Factors

Other than interest rates, movement in property values will also make a significant difference. In most areas, real estate prices have been increasing progressively for a year or so. Many markets are getting multiple offers and offer prices above asking. Much of this is due to scarce housing inventory.

What Maine Buyers Should Keep In Mind When Weighing Buying Now or Later

Increasing interest rates and home prices both negatively effect home buyers. Buyers will find that their price point drops as the trend continues. The type of homes within a price range will be less optimistic as well. All things considered, it seems better to buy sooner rather than wait.

What is Coming This Spring

Spring is historically the busiest season for real estate. There should be more inventory to meet the pent up demand, but expect lots of competition. Individuals choosing to act will take advantage of lower interest rates. Additional improvements in home prices will bring an opportunity to build equity faster than usual.

About Mini Major

Mini views the purchase or sale of a home as a major life transition that usually evokes a wide array of challenges and emotions She brings her strong analytical, communication, and mediation skills to that process. For buyers, she helps to assess realistic goals and maps out a facilitation strategy that is uniquely designed to meet their individual styles with limited stress. For sellers, she provides honest, factual information necessary to set the right price and, together with the extraordinary resources of the Bean Group, provides state-of-the art marketing materials to present that property with appeal to the most appropriate potential buyers.

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